US bank State Street has been selected as the new custodian bank for a major Swiss federal government compensation fund, previously held by UBS. The decision, made in December after a two-year tender process, was confirmed by Compenswiss, the federal body managing the public pension fund.

The transition is expected to be finalised by the end of this year, according to Reuters. The AHV/IV/EO fund, valued at over 40 billion Swiss francs, had been under UBS’s custodianship for 26 years. Despite the change in custodians, Compenswiss clarified that the role of the custodian bank is administrative and does not involve managing the funds.

In most countries, a custodian bank appoints a sub-custodian. For State Street, UBS will continue to serve as the sub-custodian in Switzerland, ensuring that the fund’s Swiss assets remain with UBS.


UBS has not commented on the transition.